Es-con Japan Ltd (TSE:8892)’s Valuation Review According to Quant

December 8, 2017Newswire

Es-con Japan Ltd (TSE:8892) has an ERP5 rank of 7922. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The lower the rank, the more undervalued a company is considered to be.

Q.i. Value

The Q.i. Value of Es-con Japan Ltd (TSE:8892) is 45.00000. The Q.i. Value is another helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Es-con Japan Ltd (TSE:8892) is 0.054598.

The Earnings to Price yield of Es-con Japan Ltd (TSE:8892) is 0.104523. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for Es-con Japan Ltd TSE:8892 is 0.052705. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for Es-con Japan Ltd is 0.020755.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Es-con Japan Ltd (TSE:8892) is 0.002182.

Price to book, Price to cash flow, Price to earnings

The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Es-con Japan Ltd TSE:8892 is 2.263322. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Es-con Japan Ltd (TSE:8892) is . This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Es-con Japan Ltd (TSE:8892) is 9.567283. This ratio is found by taking the current share price and dividing by earnings per share.

Value Comp 1 / Value Comp 2

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Es-con Japan Ltd (TSE:8892) is 38. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Es-con Japan Ltd (TSE:8892) is 30.

Volatility 12 m, 6m, 3m

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Es-con Japan Ltd (TSE:8892) is 33.907300. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Es-con Japan Ltd (TSE:8892) is 28.485800. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 30.748400.

MF Rank

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Es-con Japan Ltd (TSE:8892) is 6570. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Es-con Japan Ltd (TSE:8892) is 4. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Return on Assets

There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Es-con Japan Ltd (TSE:8892) is 0.056482. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.